Subscribe and listen to AW’s podcast!
Subscribe and listen to the Automation World Gets Your Questions Answered podcast!
Listen Here

Schneider Consolidates UPS Market

Schneider Electric (, based in Rueil Malmaison, France, and American Power Conversion (APC,, a West Kingston, R.I., manufacturer of uninterruptible power supplies (UPS), have entered into a definitive merger agreement under which Schneider Electric will acquire all outstanding shares of APC for an enterprise value of approximately $5.5 billion. APC had $2 billion in sales in 2005.

Schneider Electric states that by combining APC with its MGE UPS Systems subsidiary, it will become a global leader in the sector. APC is strong in small and medium UPS systems, but its profitability has been negatively affected by the need to develop large systems. Schneider expects the merger with MGE UPS Systems to help APC improve profitability on its large systems.

Schneider expects to record $3 billion of additional value to its financials beginning in 2007. The turnaround plan for APC includes generating cost reductions from “synergies” in purchasing, research and development, support functions, sales, services and the like to the tune of $220 million—70 percent to be achieved by 2009.

Test Your Machine Learning Smarts
Take Automation World's machine learning quiz to prove your knowledge!
Take Quiz
Test Your Machine Learning Smarts
Discover New Content
Access Automation World's free educational content library!
Unlock Learning Here
Discover New Content